Business Partnering Innovation Business Series

1. Business PartneringInnovation Business Series Your Partner for Ventures in Science and Technology The U.S. Civilian Research and Development Foundation (CRDF) Industry Partner Development Program (PDP) (c) 2005, US Civilian R&D Foundation

2. Finding Business Partners (c) 2005, US Civilian R&D Foundation

3. Business Networking • Develop a Networking Map • Develop your statement (Pitch) • Start with people you know • Ask specific questions • Easily answered • Contacts • Information • Introductions • Adapt from what you learn • Build relationship with key people (c) 2005, US Civilian R&D Foundation

4. Friend Pitch Contact Referral Connector Pitch Info Colleague Target Contact Introduction Pitch Referral Connector Info Acquaintance Contact Pitch Networking Map (c) 2005, US Civilian R&D Foundation

5. Networking Table Pitch: I’m a scientist with the Institute of Applied Methods looking to meet R&D managers from Telecom equipment companies. Your name was given to me by my (friend/colleague…) [name] who I know (how?). [Name] indicated that you may be in the position to (refer/introduce) me to one or two software vendors that sell to telecom manufacturers. . . (c) 2005, US Civilian R&D Foundation

6. Internet Search (Handout) Multiplier Organizations • Trade Shows & Expositions • Industry Associations • Intellectual Property • Business Directories • Industry Analysts • Technology Commercialization Marketplaces (c) 2005, US Civilian R&D Foundation

7. Patent Search for U.S. Partners U.S. Patent and Trademark Office http://patft.uspto.gov/netahtml/search-bool.html (c) 2005, US Civilian R&D Foundation

8. Find Companies, Names, Location (c) 2005, US Civilian R&D Foundation

9. Select Potential Partners • Partner for critical needs • Select Partners with: • Demonstrated capacity • Well matched to need • Reasonable personalities • Professional culture • Sufficient need = time allocated • Commit after proven performance (c) 2005, US Civilian R&D Foundation

10. Developing Partners (c) 2005, US Civilian R&D Foundation

11. Developing Partners • Seek various prospects • Still be selective • Can take months to establish cooperation • Communicate well • Standard English, clear and concise • Tech disclosures: 1 page, non-confidential, cover letter, CV • Tailor information for each company • Target well • Large companies sometimes less open • Small companies may be more open • Find companies involved with your research area • Understand US market for your technology • U.S. colleagues can help find contacts and market info • Investigate BEFORE contacting • Prepare exactly how research will benefit • Verify company makes products relevant to your technology • Verify company does not already have your process or product • Find out which of the company’s products are similar to yours • Compare your product or process to theirs in concrete terms • If your product is not better, they will not be interested • Prepare a short statement (pitch) • Present why to partner with you in 1 to 3 sentences, up front • Remind that CRDF can reduce risk through grants and administration (c) 2005, US Civilian R&D Foundation

12. (Sample Company) CEO Director Government Sales Director Commercial Sales Mgr Transport Sales Mgr Industrial Sales Mgr Telecom Sales VP BusDev VP Sales VP Mktg CFO VP Eng Investigate Potential Partners • Customer Information • Market position • Competitors • Suppliers • Partners • Customers • Product position • Financial position • Trends • Internal situation • Plans, rollout-outs • Decision-making • Culture • Politics • Personalities • Policies • History (c) 2005, US Civilian R&D Foundation

13. Pitching to Business People 3 Pitches • Engineer/Tech Manager • Technology pitch • Solves problems, relate to marketing • Commercial engineers are not scientists • Business manager • Business goals pitch • New markets, products, competitive edge • Financial manager • Cost savings, increased sales or profit 3 Steps: Initial Contact • Design subject line • Email message • Follow-up (Fax, phone, voicemail) (c) 2005, US Civilian R&D Foundation

14. Business or Technology Pitch Street address unnecessary • Who are you? • Summary of why you are writing • Credibility • What you want. • (2-3 sentences) First Name! (U.S. Only) Why they should care? (1-2 sentences) First Name! (U.S. Only) Ask for dates to meet Business Email Subject: Early Diagnosis Advantage for Test Equipment Business Melody Landsforth Director, Research and Development Department Digene Corporation Gaithersburg, MD Dear Melody, I lead an advanced research team in molecular medicine and have testing technology of direct potential benefit to Digene. We are a leading Eurasian facility in the field of gene therapy. I would like to meet with you at your office in late May. Our latest technology enables very early cervical cancer diagnosis, which, as you know, is central to the test equipment market. Please indicate a few dates in May that you would be available to meet. Best Regards, Nurzhan Nurzhan Ukbaev Head of the Department, Research Institute of Molecular Medicine Almaty, Kazakhstan Tel: (8312) 456-7658 Fax: (8312) 456-7659 E-mail: nukbaev@rimm.kz (c) 2005, US Civilian R&D Foundation

15. International Business Culture • Large • Thousands of companies • Millions of professionals • Specialized • Specific matching is key • Busy • 50 to 200 emails per day • 10 to 50 phone calls per day • 1000s of opportunities RESULT: Behavior – Elimination (focus, select, prioritize, filter) • Subject Line (email) • Subject line is everything, it’s your pitch! (c) 2005, US Civilian R&D Foundation

16. Get a Reply • Niche – get specific • Communities get small when you get specific • Key points ONLY • Do NOT cover everything! • Open with your most convincing proposition or benefit • Just enough • Incentive to take next step • Get to them to next conversation • Goal is a meeting • In-person if local – relationship • Telephone if out of area • Email is the last resort (not preferred) (c) 2005, US Civilian R&D Foundation

17. How to Get a Deal - Meetings • Get them to talk first! • Give a little and then ask a question • Find their needs • Guide with questions to learn needs • “Tempt” with information • Give enough information to get them excited • Pitch yourself to address their needs • Pitch your technology to address their needs • Guide them to a solution • Devise solution using you & your technology (c) 2005, US Civilian R&D Foundation

18. How to Get a Deal - Closing • Conversations move the process • Emails / voicemails ONLY to get to next SCHEDULED conversation • Never leave without . . . • Scheduling next conversation (date & time) • Action items, responsible person, and due dates • Starter project • Propose and easy, formal activity to engage • Assessment, prototype, collaboration • Easy, quick, sure to impress or exceed expectations • Close • When close to agreement, propose initial engagement • Price, schedule and payment terms • Follow-up with fax/email confirmation • Get commitment, point-person, and schedule next conversation (c) 2005, US Civilian R&D Foundation

19. Partnering Summary • Network • Research on internet • Qualify • Prepare opening pitch • Get needs • Jointly establish solution • Close – propose initial project • Price, schedule, paymentterms (c) 2005, US Civilian R&D Foundation

20. Q&A: Partnering (c) 2005, US Civilian R&D Foundation

21. CRDF Contact Information U.S. Civilian Research & Development Foundation (CRDF) 1530 Wilson Boulevard, Suite 300 Arlington, VA 22209 USA Emails info@crdf.org General CRDF enquiries pdp@crdf.org Partner Development Program (business questions) fstm@crdf.org First Steps to Market Grants (new partnerships) nstm@crdf.org Next Steps to Market Grants (commercial partnerships) Website: www.crdf.org Tel: +1 (703) 526-9720 (c) 2005, US Civilian R&D Foundation